|
Q:
|
Under what conditions will SSD be payable?
|
|
A:
|
SSD liability will arise if all the following three conditions are met, unless it is exempted from SSD:
The transaction involves the sale and purchase or transfer of a residential property;
The property is acquired by the seller or transferor on or after 20 November 2010; and
The property is disposed of by the seller or transferor within 24 months (if property was acquired between 20 November 2010 and 26 October 2012) or 36 months (if property was acquired on or after 27 October 2012) from the date of acquisition.
|
Q:
|
Under what conditions will SSD be exempted?
|
A:
|
There are several cases wherein SSD will be exempted, for example, in the sale or transfer of residential properties to the Government, gift of residential properties to charitable institutions exempted from tax under section 88 of the Inland Revenue Ordinance and sale or transfer of residential properties between associated bodies corporate, etc.
|
Q:
|
How to count the holding period of a residential property?
|
A:
|
It is based on calendar months, say if a property was acquired on 20 November 2019 and was disposed of on 19 May 2020, the holding period of the property is exactly 6 months.
|
Q:
|
Who will be liable to pay SSD?
|
A:
|
In general, the buyer, the seller, and any person who used the instrument will be jointly and severally liable to pay SSD.
|
Q:
|
What are the rates of SSD?
|
A:
|
The rates of SSD based on the holding period of the residential property by the seller or transferor before disposal:
If the property was acquired between 20 November 2010 and 26 October 2012:
Holding Period
|
Rates
|
6 months or less
|
15%
|
More than 6 months but for 12 months or less
|
10%
|
More than 12 months but for 24 months or less
|
5%
|
If the property was acquired on or after 27 October 2012:
Holding Period
|
Rates
|
6 months or less
|
20%
|
More than 6 months but for 12 months or less
|
15%
|
More than 12 months but for 36 months or less
|
10%
|
|
FAQ
